Analysis Of Volkswagens Leadership Differs From Other German Car Makers

Firstly, from the view of company, Volkswagen scandal is result from the misuse of CSR that the company regarded it as a marketing tool. Although Volkswagen promised to persuade CSR as their corporation culture, the reality turns out to be opposite. Volkswagen equipped defeat devices on cars deliberately to pass environmental tasks and actually the defeat device emitted nitrogen oxide approximately 40 times of standard (Dans, 2015). This behaviour can be explained as "green-washing", which means the real performance is different from the test results (Eric, 2015). The motivation of deception largely depends on corporation’s aggressive goal called “Strategy 2018” , which aim to increase annual sales to ten million cars by 2018 (Volkswagen, 2014). Therefore, Volkswagen needs to lower the price to be competitive to its competitors and one task is to reduce cost of production. Volkswagen used CSR concept to cover unethical actions. It demonstrates that Volkswagen focused on persuading the short-term target rather than its customers, long-term reputation and environment (Bansal, King & Seijts,

A strong ecological awareness may threaten Ford Motor Company, because if Ford cannot offer more environmentally friendly products to meet consumers’ demands/needs than their competitors, there is a possibility that consumers might consider switching to a competitor’s product.

White’s main points relate to the automotive revolution. Environmentalists want car companies to determine how to make alternatives to the regular petroleum-fueled engine. White explains alternative methods that could persuade the automotive industry to go green, such as using ethanol or other biofuels to power one’s car (332). However, while explaining

Volkswagen wants to become a global and environmental leader in the automotive world and has developed the “Strategy 2018”. The “Strategy 2018” is stated in their latest annual report in the goals and strategies section as follows:

BMW’s main competitors on the UK market are Daimler Ag well-known with Mercedes and Maybach, Vauxhall Motors offering Opel, Ford, Audi and Volkswagen Group UK. Ford has been first on the market share for the last two years (See AppendixB), attracting the customers with a combination of price, power and efficiency. Ford’s engine technology plays a key role, reducing both running costs and emissions while delivering rewarding levels of power and performance (Ford, 2015). This model may serve as an example to BMW in terms of considering emissions causes and the public sensitivity of this matter. After the recent emission scandal Volkswagen has lost positions among the leaders in the industry and people lost their trust and respect of the company. According to estimates, the cost of the entire dieselgate scandal for Volkswagen, including government fines and settlements, private settlements, recall expense, and future loss of sales, could be up to $34.5 billion (Trefis, 2015). According to the previous source, BMW’s diesel emission was also questioned, in particular, the model X3 was reported to be eleven times above the European norms which led to a 10% decline in BMW’s stocks. Further investigations will follow in BMW’s case but nonetheless it is a serious issue and a sign that the company must be very careful with its offered products, otherwise, BMW may follow Volkswagen’s collapse. Mercedes is arguably the toughest and the most challenging competitor to BMW as both

Volkswagen Group is a German transnational automotive manufacturing corporate which headquartered in Wolfsburg, Lower Saxony, Germany. It was founded in May 28, 1946 which is 69 years ago from now. In German, Volkswagen means “people’s car” in German. Volkswagen Group manufactures passenger cars, commercial vehicles, motorcycles and also engines. Volkswagen is a subsidiary company of the Volkswagen Group, and it is also the top-selling brand among the Volkswagen Group. Besides, due to the successful management of the company, Volkswagen Group has been maintaining its prime as the largest market share in Europe for more than two decades. As of 2013, it deserved the ranking of ninth in the Fortune Global 500 list of the world’s largest companies.

It is not hard to see that the scandal would cause a horrid blow to VW’s image. Until the incident, VW had, like many other German companies, the reputation of “German engineering” (Robertson, 2013). However, instead of using that innovation to develop diesel-fueled cars compliant with U.S. standards, it decided to try to scam its way in the market. Not only did the company admit to having 11 million cars with software intended to cheat tests (Gates, Ewing, Russell & Watkins, 2017), it also plead guilty to “destroying evidence in an elaborate cover-up” (VW Admits Emissions Cheating and Cover-up, 2017); building further distrust among its consumers.

Volkswagen is a car manufacturing company headquartered in Germany. It is the second largest auto maker company established in 1975. Recently, it has been the topic of discussion in the news because of its emission scandal.

In the year of 2015, Volkswagen prioritized organizational efficiency and financial sustainability over corporate social responsibility. To illustrate, the EPA (the Environmental Protection Agency) discovered that the Volkswagen cars

Volkswagen has always been a very large competitor in automotive industry, however recently Volkswagen has seen a drop in sales due to a discovery made by the EPA. The EPA found that diesel engine cars made by Volkswagen had a program that lowered emissions readings when the cars were tested. So when the car was tested the reading would show the car was producing a lower amount of emissions then it actually was. Volkswagen recently came out in September and admitted they placed the program in their cars and cheated the emissions testing. More than ten million Volkswagen cars have been effected by this scandal. So what does this mean for Volkswagen?

The legal issues in this case is that Volkswagen performed corporate fraud and environmental fraud. This is a huge deal because this may end up being the largest and longest case of corporate fraud in the auto industry’s history. And not only does it affect one country but it also effects other countries mentioned above. So far 10 Countries have opened investigations because of these findings. Just in the United States Volkswagen

In the last decade, society has become increasingly worried about the impact that humans have on the environment. Many people believe that climate change is actively going to change the way how people live in the future. In response to the public concern, many companies are searching for greener methods of energy output. Instead of coal and gasoline, corporations are becoming more socially responsible in their actions. For example, long standing establishments like Walmart has installed LED lighting in all of their stores to cut down on energy consumption and more restaurants are switching to locally sourced and organic ingredients. Although many companies focus on particular aspects of their business, a fairly new automobile company is

In 2013, Volkswagen was ranked number eight from Forbes in regard to the top companies with the best reputations for Corporate Social Responsibility (Smith, Forbes, 2013). Volkswagen had a reputation for “innovation, corporate citizenship and economical, environmental and social sustainability” (Volkswagen, 2013) and many people trusted the company and the way that they conducted their business. This all changed in 2015, when just as many automakers did before them, they surrendered to their greed and

Nevertheless, Audi’s US sales continue to rise despite the EPA’s stop-sale order for its diesel engines. Indeed, customers have discovered that the marque’s family of gasoline-powered models are a sufficient substitute — lower fuel prices across the board has relieved consumer pressure to find the most efficient cars too.

With stringent federal fuel efficiency laws looming on the horizon, combined with growing technology that is becoming increasingly affordable, every major automaker is currently selling or developing an eco-friendly vehicle. The 2012 environmental flagship models are not just electric vehicles (EV), hybrids and fuel cell vehicles (FCV). In fact, great strides are being made to improve the performance and productivity of diesel, gasoline and natural gas vehicles as well.